Businesses go solar because solar is an income-generating asset. Companies may chose to pay cash — providing an attractive return — or they can use financing to match their investment outlay to their electric bill savings over a period of time.
FINANCING OPTIONS FOR BUSINESSES
The availability of financing programs in your area in relation to your financial goals are two key factors in determining what financing is best for your business. For example, some companies see crucial value in reaching a positive cash flow quickly whereas others like the idea of spreading the investment out over time.
BENEFITS TO FINANCING
Utilizing a loan for your commercial solar project is an attractive option for many businesses. If you do not have significant liquid capital available to purchase a system right away, you may want to finance. Additionally, your business’s limited capital budgeting window may encourage you toward financing to take advantage of the energy savings and tax benefits immediately.
BENEFITS TO A CASH PURCHASE
- Own the solar PV system asset
- Generate power at no cost
- Enjoy clean energy for the system’s 40+ year lifespan
- Receive the maximum return on investment
- Experience a shorter installation time
WHEN SHOULD YOU NOT FINANCE?
Financing for business-owned solar may not be available in all markets or appropriate for every business. Additionally, you may want to maximize your return on investment by owning the equipment as well as the power you generate — while avoiding interest payments.